“In this world nothing can be said to be certain, except death and taxes.” ~ Ben Franklin
Although April is usually considered the official month for tax season, some online sellers are more familiar with another date – October 15. For those that don’t know, this is the deadline date for those who have filed extensions. Whether your with the former or latter crowd, as this year begins to draw to a close, it’s a good time to think about how you can make the process simpler for next year. Here’s some ways that can help.
Create a dedicated area for tax stuff.
Whether you prefer an organized file system or like to just toss receipts and other paperwork into a desk drawer to deal with later, the first step toward simplifying the process is to create a dedicated area to keep your tax stuff in. Terry, a longtime eBay seller finds that the best way for her to keep up with receipts and other papers she may need is to take them straight out of her purse and put them into the top drawer of her file cabinet. Although she says there is still some organizing to do whenever tax season rolls around, everything is in one place which makes the process a whole lot easier.
Use a designated bank account for your online business.
Creating a separate bank account for your online business may seem like some extra work for bookkeeping, in reality, it actually makes the process easier. Instead of having to sort through personal and business purchases, you can simply view your bank statements to know exactly what you spent for business and what type of income you had. Keep in mind that although it’s not mandatory for you to have separate accounts as a sole proprietor, if you choose to become a corporation or LLC, you do need separate accounts, so if you are just getting started and think that you may incorporate in the future, it’s best to go ahead and open a business account right off the bat.
Make bookkeeping part of the routine.
While it’s easy to procrastinate and make taxes a low priority, you can save a whole lot of time and stress by making your bookkeeping a part of your daily or weekly routine. Even though April (or October) may be months away, dealing with it a little at a time can keep tax preparation from becoming a big ordeal as time ticks away. To make the process even more simple, consider using Quicken, Quickbooks or another type of bookkeeping software that will import bank records and sales totals right into files on your computer.
How do you simplify the tax process? Leave a comment below.